Children’s services in England are at “breaking point” and must receive increased funding of £3.1bn in the 2019 funding review, according to a report from an influential committee of MPs.
A report from the housing, communities and local government committee said the boost to core funding was needed for the period up to 2025, but would not be enough on its own. The report added that an increased budget must be accompanied by “systemic and strategic” changes.
The number of looked-after children in England has increased during the ten years to 2018 from 9,400 to 75,420. The current range of statutory and non-statutory children’s services cost around £9bn annually.
Clive Betts, chairman of the committee, said children’s services had reached “crisis point” as funding failed to keep up with the steady rise in the number of children needing support.
“It is clear that this approach cannot be sustained, and the government must make serious financial and systemic changes to support local authorities in helping vulnerable children,” said Betts.
“They must understand why demand is increasing and whether it can be reduced. They must ensure that the funding formula actually allows local authorities to meet the obligations for supporting children that the government places on them.”
Dr Eleanor Roy, policy manager for health and social care at CIPFA, said the report highlighted councils cutting back on discretionary services that could avoid families reaching crisis point.
She said that councils had seen a substantial reduction in resources with local authorities under constant pressure to do more for less. Last year saw a 16% turnover in children’s social workers.
“The funding packets provided by government simply aren’t enough to repair the breaking point children’s services are currently facing,” said Dr Roy.
“Vital additional funding is required urgently to reduce pressures on the front line staff working to prevent dire situations for young people most in need of support.”
The MPs recommended that in future, one-off grant funding from government should be aimed at a “long-term strategic cross government approach,” and ensure it does not impose a heavy administrative burden on local authorities.
The committee also wants government to announce a successor to the Troubled Families Programme before the 2019 spending review to provide certainty for long-term funding. The programme runs only until 2020. A review published in March said the programme “appears to have reduced the proportion of looked after children.”
High turnover of staff was also a major issue for MPs, who said children pay the price as relationships break down.
The committee called on government to launch a review of the rising number of children needing support.
MPs were also concerned by the high cost of independent service providers to the sector and called for a review by the Competition and Markets Authority.
“There needs to be better commissioning and procurement, to improve the market for residential care and provide better value for money,” the report said.
The MPs suggested government should examine the barriers to creating more residential care places and develop better regulation of the children’s care market.
